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| The Tax Publishers2020 TaxPub(DT) 2450 (Bang-Trib) INCOME TAX ACT, 1961
Section 37(1)
Software expenses incurred to acquire right to access to use software for a limited duration, i.e., upto 2 years was to be treated as of revenue in nature.
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Capital or revenue expenditure - Software expenses - Right to access to use software for limited duration -
Assessee claimed deduction of software expenses. AO held the expenditure to be of capital in nature. Held: Software expenses were incurred to acquire right to access to use software for a limited duration, i.e., upto 2 years and, therefore, same was to be treated as of revenue in nature.
Followed:CIT v. Toyota Kirloskar Ltd., (2012) 349 ITR 65 (Karn) : 2012 TaxPub(DT) 3179 (Karn-HC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2005-06
INCOME TAX ACT, 1961
Section 10A
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